A little Mortgage Advice??

Lesley_Allan

Hi Everyone,

I hope I have came to the right place for hopefully some advice, I know that no one has a crystal ball so please bear with me.

I'm 23, bought my first flat in August 09.
I only had a 10% deposit so there was not a lot of great choice for me with regards to deals available, I was only able to put 10% down because i did not want to wipe out my savings that i have incase of emerceny repairs unexpected things, and incase of redundancy.

I live on my own and so far have been managing to cope fine.

I am on a tracker, 4% above BOE base rate ( i know its not great)
mortgage £60k over 25 years.

did a wee bit of work to the house and made it from 1 bed to a 2 bed.

the thing that i am slightly concerened about is the upcoming election,
i know i am probably too young to remember but my parents have been telling me of the days of the torys and when interest rates were at 14% or more.

I am now really worried that interest rates are going to take a massive hike in a short periood of time and that i will not be able to afford it.

do you think i should possibly be looking at changing to a fixed deal with my current lender??

as i say , I am pretty new to all this since its my first home and any help at all would be greatly appreciated

many thanks for reading.

opinions4u

The tracker margin is pretty high.

Why did you choose a tracker? What attracted you to it, and what has changed since?

The other key question for me is what penalties exist if you move off your tracker rate?

Lesley_Allan

opinions4u wrote: »

The tracker margin is pretty high.

Why did you choose a tracker? What attracted you to it, and what has changed since?

The other key question for me is what penalties exist if you move off your tracker rate?

becaus the only fixed rate on offer at the time was 6.99% plus it had 1999 arrangement fee on top as well.

so the tracker seemed like the better option at th time, just starting to feel a little bit insecure thats all, have always worried about my money, and at present i am saving some money each month for when the rates go up, how fast and how quick no one knows.

I will need to double check my paperwork, i didn't see any mention of penaltys just that you could change deal after 3 months of being in current one,

although i do see by looking at their website a lot of other ones, you need a deposit for switching and there is quite high lending fees as well

dimbo61

If you can build up your emergency fund ( and change onto a better deal fund) and overpay the mortgage! The less you owe the less you need to worry about what interest rates climb too.
Use "whatsthecost " website to work out how much your mortgage would increase by if the interest rate went up by 1/2/3%

gemmalouanna

Lesley - the same worry we are having tonight!

Have found a house we would like to offer on but are very worried about future interest rises and trying to ensure that we could still afford the payments.

How do other people try and plan/budget? What should we be considering?

I realise this is a very open question but any advice is appreciated and will give us things to consider incase we have missed something!